Wang Jianlin made billions speculating on Chinese real-estate; now that he's diversified into buying Hollywood movie studios and chains of movie theaters, the richest man in China is prepared to say what many have known: the Chinese property market is a huge, deadly bubble that's ripe to burst.
The issue is the huge buildout of commercial properties in secondary and tertiary cities -- developments for which there is no demand, created solely to absorb speculators' capital with the promise of quick flips to other, dumber speculators.
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.
"I don't see a good solution to this problem," he said. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
It's a serious worry in China, where the economy is slowing at the same time as high debt levels continue to increase rapidly. There are massive sums at stake in the real estate market: direct loans to the sector stood at roughly 24 trillion yuan ($3.6 trillion) at the end of June, according to Capital Economics.
Billionaire: Chinese real estate is 'biggest bubble in history'
[Jethro Mullen and Andrew Stevens/CNN Money]
(via Naked Capitalism)
In a deeply researched longread, New York Times investigative reporters Walt Bogdanich and Michael Forsythe document in fine detail the role played by the ubiquitous McKinsey and Company in legitimizing, coordinating, and supercharging the world's most notorious human-rights-abusing regimes, from Saudi Arabia to China to Russia.
A coalition of shipping industry associations has published The Guidelines on Cyber Security Onboard Ships, laying out best practices for the giant ships that ply the seas, and revealing that these behemoths are routinely infected with worms, ransomware, and malware spread by infected USB devices.
Today in the Mojave desert, Virgin Galactic had a successful test flight that reached 50 miles above the surface of the earth, meeting the Federal Aviation administration’s definition of space. This places the company one step closer to the long-awaited goal Richard Branson promised: space tourism. SpaceShipTwo, welcome to space. — Virgin Galactic (@virgingalactic) December […]
For the true audio enthusiast, there’s a lot of difference between putting on some songs “for background music” and a true listening experience. For the latter, there’s nothing like a pair of sturdy headphones and the powerful speakers that come with them. And the wireless variety doesn’t get much more powerful than the TREBLAB Z2 […]
Digital or analog, there’s a path of least resistance for any project. Finding that path is what the Agile methodology is all about, which is why proficiency in it is a must for any project management position – and the paycheck that comes with it. And the quickest path to learning Agile? The Agile Project […]
Everybody’s flown a paper airplane. But what if you could fly on a paper airplane? Until we invent shrink-ray technology, the PowerUp X FPV Video Paper Airplane Kit will have to do – but it’s as fun as that sounds and more. The original version of this creative toy added drone tech to the old, […]
